On March 17, the Minister of the Interior announced the obligation to hire vehicle insurance, a measure that will be implemented within 45 days. The objective of this initiative is to strengthen the road management and guarantee the protection of third parties in case of accidents, following the model adopted in other countries.
However, this provision has generated a strong rejection in various sectors of society.
Hours after the announcement, the demonstrations began. By March 18, at 3:00 p.m., at least 13 blockages were reported on various routes of the country as a protest sample.
Sectors affected by the crisis
The blockages registered in different points of Guatemala have generated concern in various economic sectors due to their immediate impact on commercial activity, logistics and foreign investment.
These interruptions in mobility affect the supply chain and the supply of goods and services, in addition to projecting an image of instability that could dissuade potential investors.
Gastronomic and Commercial Industry
The business sector has already reported economic effects derived from this situation. The Guatemala restaurant union informed Free press that clients have canceled scheduled events from today (March 18) until next week, given the uncertainty about the duration of the protests.
This situation adds to other challenges facing the country, such as the increase in inflation and rise in the basic basket. According to representatives of the union, the business sector has faced for more than a year an environment of political instability, whose consequences fall on employment generators and citizens fighting to improve their quality of life.
The union called the Executive to promote dialogue and avoid violations of population rights. He stressed that the Government must guarantee adequate conditions for life, security, education and free locomotion of citizens.
Foreign investment at risk
From the industrial sector, a source consulted indicated that a foreign investor of the costume and textile sector visited by factories in Palín and Amatitlán had to modify his agenda due to the blockages in Villa Nueva, affecting his itinerary and his return to the United States.
The situation, according to analysts in the sector, generates a negative perception of the investment climate in the country and could discourage future foreign capital projects.
Energy sector and fuel distribution
For his part, Enrique Meléndez, Executive Director of the Association of Gasoline Expendors (AGEG), reported that several supply units managed to distribute fuel before the generalization of blockages in the department of Guatemala. Other units used alternate routes that had not yet been affected by the demonstrations.
Meléndez said that, so far, the network of service stations in the metropolitan area has sufficient inventory of gasoline and diesel.
However, he warned that the sector monitors the situation in real time to avoid possible interruptions in product distribution.
Transport and mobility of the population
Blocks have also affected population mobility. Parents denounced that some students who left at noon from their educational centers were still trapped in traffic until night.
Likewise, various companies and supermarkets have reduced their operating schedule to allow their employees to return to their homes, in some cases, on foot due to the lack of transport.
The General Directorate of Civil Aeronautics (DGAC) reported that the accesses to the La Aurora International Airport have been affected by the demonstrations and recommended to passengers coordinate with the airlines possible changes or cancellations.
The economic impact of the blockages could continue on the rise. Losses in strategic sectors, the paralysis of activities and uncertainty about the development of protests threaten the country’s economic stability.
The resolution of this conflict will depend on the ability of the authorities and the sectors involved to establish an effective dialogue that allows to achieve a viable and equitable solution for all parties.